I must apologize for the lack of updates, it seems I've been ridiculously busy recently. Everything I had planned to do this year (And I mean everything) has been turned upside down by forces out of my control.
KWin development is still going strong. Martin is working on the cube and I'm having fun obliterating everything else. So far I've written two new effects: Fade desktop and highlight window, the latter of which is one that integrates with Plasma and fades out all windows except one. I'll give more details on them when I make a proper blog update.
So far my plans currently are:
Finish the highlight window effect and integrate it nicely with Plasma,
Polish taskbar thumbnails so it looks like it's actually on the tooltip and not floating above them,
Modularize KWin core so it's easier to write non-compositing features and integrate the existing ones nicer,
Merge active desktop borders and active screen edges and expand on the amount of things you can assign to them such as launching the dashboard for example,
Prevent Plasma panels on one screen of a multiscreen setup from interfering with windows on another screen,
Redo a large section of the KWin system settings GUI to accommodate all of the above, and
Go on a massive bug fix frenzy.
Do I have enough time to do all this before KDE 4.3? I certainly hope so.
ARGB decoration support is still supposed to be coming but I really don't know what's happening with that right now. I overheard some talk about writing a more optimized and memory-efficient decoration system at the same time but other than that things have stayed quiet on that front.
If you would like to stay more up-to-date with what I'm doing feel free to follow me on identi.ca (Preferred) or Twitter.